The production manager of Rordan Corporation has submitted the following quarter

Question

The production manager of Rordan Corporation has submitted the following quarterly production forecast for the upcoming fiscal year 1st Quarter 8,800 2nd Quarter 7,000 3rd Quarter 7,400 4th Quarter 8,300 Units to be produced Each unit requires 0.55 direct labor-hours, and direct laborers are paid $10.00 per hour Required 1. Prepare the company's direct labor budget for the upcoming fiscal year. Assume that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced 2. Prepare the company's direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is not adjusted each quarter. Instead, assume that the company's direct labor workforce consists of permanent employees who are guaranteed to be paid for at least 4,500 hours of work each quarter. If the number of required direct labor-hours is less than this number, the workers are paid for 4,500 hours anyway. Any hours worked in excess of 4,500 hours in a quarter are paid at the rate of 1.5 times the normal hourly rate for direct labor Complete this question by entering your answers in the tabs below Required 1 Required 2 Prepare the company's direct labor budget for the upcoming fiscal year. Assume that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced. (Round "Direct labor time per unit (hours)" answers to 2 decimal places.) Rordan Corporation Direct Labor Budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year Direct labor time per unit (hours) Total direct labor-hours needed Direct labor cost per hour Total direct labor cost

Explanation / Answer

1st quarter 2nd quarter 3rd quarter 4th quarter Year Required production in units 8800 7000 7400 8300 31500 Direct labor time per unit (hours) 0.55 0.55 0.55 0.55 0.55 Total direct labor-hours needed 4840 3850 4070 4565 17325 Direct labor cost per hour 10 10 10 10 10 Total direct labor cost 48400 38500 40700 45650 173250 2 1st quarter 2nd quarter 3rd quarter 4th quarter Year Total direct labor-hours needed 4840 3850 4070 4565 17325 Regular hours paid 4500 4500 4500 4500 18000 Overtime hours paid 340 0 0 65 405 Wages for regular hours 45000 45000 45000 45000 180000 Overtime wages 5100 0 0 975 6075 Total direct labor cost 50100 45000 45000 45975 186075

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